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Thursday, 22 November 2012

Old Rangers Last Hurrah

Allow me to
congratulate old Rangers on their last hurrah.

If you were
to believe most of the media or the old Rangers fans you could be forgiven for
thinking this was the defunct club’s greatest victory since winning the now
defunct European Cup Winners Cup in 1972.

But what
exactly have they won?

A trophy?
No.

A place in
the Champions League? No.

A watch? No.

They have
won a reduction in the amount of tax owed to HMRC.

Well, three
cheers for that. Everyone likes a victory over the taxman, don’t they?

Let’s be
honest now.

Have any of
you skilled tradesman out there ever done a homer?

How many of
you have an ISA?

Who’s
rejoiced when a cheque from the Inland Revenue drops through your letterbox for
overpaid tax?

So, in a
nutshell, it’s a victory for the little guy over the government, is it not?

Well, as
Dalglish might say, mibbes aye mibbes naw.

We’re not
talking about a small, local business struggling to get by from month to month,
are we?

Again, some
might say yes, others will argue no.

In terms of
social and cultural factors old Rangers were a major Scottish institution,
supposedly respected around the world, and heralded by their fans as the
greatest club in the world.

Of course,
all fans believe their club to be the greatest club in the world, for differing
reasons; some with more of a rightful claim than others.

Old Rangers
fans pointed to the number of trophies their club had won and, rightfully,
highlighted no other club could equal their tally.

That’ll be
that then.

Well, no, not
really. Would Manchester United, Liverpool, Barcelona or Real Madrid swop their
history for that of old Rangers?

Remember, we’re
not talking about a local painter and decorator wallpapering your hall for a
few quid cash in hand.

We’re
talking about tax avoidance on an industrial scale.

Of course, old
Rangers and their fans will claim, rightfully, that most of this avoidance was
legal. Some may even claim that it was all legal and above board.

But they
weren’t all legal and above board, were they?

Old Rangers
conceded various EBTs were not administered properly and tax was
indeed due on those.

So, rather
than an out and out victory, as claimed by the media and old Rangers fans, it’s
more a case of Rangers still being guilty of tax evasion, but not on the scale
HMRC said they were.

I ask you,
how can admitting tax evasion on any scale be classed as a victory?

But the new amount
due is nowhere near the amount HMRC claimed, or so we’re led to believe, as the
exact amount hasn’t yet been published. Surely that’s a victory?

Call me
old-fashioned, but I thought a victory would’ve meant there was no tax to pay. Total
vindication would be a victory. But there was no total vindication. What came
out of the tribunal was an insight into the way old Rangers tried everything
they could to conceal what they were up to.

Of course,
there will be those who still shout about everything being in the Annual
Accounts, but as some of them know, if not all, the devil is in the detail, and
the detail isn’t in the Annual Accounts.

Throughout
the FTT and before it’s obvious David Murray, no matter what he said in public,
didn’t truly believe he would win the big tax case.

This is why
he offered HMRC £10 million to settle the case years before.

This is also
why he refused to accept the tax liability of the big tax case when trying to
sell the club.

This is also
why he ended up selling a club with over £100 million assets for £1.

For years he
refused to cooperate with HMRC and withheld evidence.

Some
evidence was only discovered when the City of London Police raided Ibrox.

City of
London Police? Raided Ibrox?

What on
earth has been going on over the years down Edmiston Drive?

Still, they
somehow managed to wriggle free of around £100 million of tax debt.

So what will
they do with that £100 million they’ve saved?

Build a new
team?

Pay for essential
maintenance to Ibrox?

Pay off all
those other creditors that forced the old club into liquidation?

No, you’re
quite correct; they won’t do any of the above.

It didn’t
matter whether the final tax bill was £2 million or £40 million or £140
million. Old Rangers still don’t have any money.

So, the
victory, as some see it, was, paradoxically, nothing more than a moral victory.

Yes, I know.
How can a club using an immoral, aggressive tax-avoidance strategy claim any
sort of moral victory?

That, my
friend, is the old Rangers way.

And, such is
their myopia, many fans and commentators are now shouting for the SPL Tribunal into
double contracts/undisclosed payments to be cancelled.

Like those
above who pointed out that EBTs were included in the Annual Accounts, some
realise the two issues are not in fact related, but they won’t let the truth
get in the way of their agenda to see old Rangers totally cleared of every
wrongdoing.

However, the
FTT and SPL Tribunal are, unfortunately for old Rangers, mutually exclusive.

It might
even turn out that in order to ‘get off’ on one case old Rangers had to
sacrifice the other.

Included in
the findings of the FTT, on page 39, is this little piece of potentially
explosive information.

‘On any view, Mr Thomson argued,
Rangers could have sought a ruling from the SFA or SPL about disclosure of side-letters
but, clearly, they had chosen not to do so. There was a conscious decision to
conceal their existence, and that extended even to the Club’s auditors.’

So, not only
did old Rangers try and hide information from HMRC for many years, they also
deliberately withheld information from the footballing authorities.

Again, call
me old-fashioned, but if you believe you’re not doing anything wrong you don’t
go out your way to hide your honest endeavours.

But, for now
anyway, old Rangers fans can walk down the street with heads held high, safe in
the knowledge that their old club didn’t steal as much tax as everyone thought.

It’s like
someone breaking into your house and stealing your laptop but leaving your
iPad, TV, car, etc. If only there were more kind-hearted thieves the world
would be a much better place.

Old Rangers
fans might also try and claim some kind of high moral ground but will find they’re
on a slippery slope. After all, as we have seen, David Murray and those around
him tried everything they could to deflect and hinder HMRC.

Outwith the
big tax case the old club still owed far more than they could ever afford to
pay.

Many hundreds
of small local businesses are still out of pocket to the tune of millions of
pounds.

But neither old
Rangers or their fans care about such matters.

They have,
in effect, got away with it one last time.

So let them
have their last hurrah. For, in effect, they are cheering about how they ‘legally’
in most cases, managed to dodge paying tax of millions of pounds.

What a fine
upstanding model club they were. Probably the most successful tax-dodging/avoiding club
in Scottish, if not the world’s, history.

5 comments:

There are few things more indicative of the absolute moral bankruptcy of Sevconians than their ludicrous claim that Rangers, having been found to have fiddled their taxes in over thirty cases, have somehow been vindicated.

Sadly, we have come to expect precisely that level of misrepresentation from the toadies in the media who continue to suck desperately on the Minty teat.

'It was conceded that advances in favour of certain players are taxable and liable to NIC (National Insurance Contributions), and 35 we have found that, in certain other limited instances, there may be a similar liability.'

At a glance, to me, and many others, this looks like they have conceded 35 cases. On closer inspection, and with the investigative help of an undercover investigator, it has become clear that the 35 is actually a line number from page 58 of the FTT result.

So, what does that mean?

It means every paper printed this same error. Every paper. If this isn't a classic case of churnalism without proper checks then I don't know what is.

Every sub-editor who cleared this should be taking a long, hard look in the mirror.

I, too, must admit to being...eh...duped. For this, I gave myself a hard stare in the mirror and didn't like what I saw, but that's because I'm getting on a bit.

Anyway, I can now take my place among such churnalistic giants as Keith Jackson.